Budget cutting to begin

Session starting Wednesday has a goal: Slash $1 billion

TALLAHASSEE — South Florida hospitals, schools and college students' wallets are set to get whacked by the budget ax as the Legislature this week prepares to chop state spending by $1 billion.

Although lawmakers could get sidetracked into fierce debates over other issues like property tax reform and no-fault auto insurance, the primary focus of their 10-day special session that starts Wednesday is to bring the state's $71 billion annual budget back into balance.

Cuts in programs are being forced by a bleak housing market and the downward spiral of the sales tax and real estate transaction revenues that the state uses to fund its expenditures.

The Legislature's budget writers also are using money-saving gambits like eliminating vacant positions, including 50 in the Florida Highway Patrol, postponing new programs and shifting money between funds to keep the state out of the red. Florida's constitution bans deficit spending.

Late last week, the House and Senate also released a budget-cutting plan that House Budget Chairman Ran Sansom, R-Destin, called "very reasonable, fair and well thought out," but that so far, has been skimpy on specifics.

The Republicans who lead Florida's legislative branch have said they tried not to touch programs that provide direct services to people in need, though some state services, like the condominium ombudsman who resolves disputes between condo owners and their associations, could disappear.

Meanwhile, Democrats on the House budget committee are complaining they have been given little information on what the Republican-proposed cuts actually will do.

Some specifics have become known. The House and Senate have both proposed slashing more than $32 million originally allocated to help reimburse hospitals for treating legal immigrants.

Most of that money would have gone to hospitals in South Florida.

"Somebody's got to eat those costs and it's got to be the local community," said Ron Book, who lobbies for the South Broward Hospital District.

Broward General Medical Center in Fort Lauderdale would take a $2.9 million hit and St. Mary's Medical Center in West Palm Beach would lose $3.2 million.

The state also is likely to cut its reimbursement rate for hospitals that care for the poor through Medicaid -- a $54 million blow that again would disproportionately affect South Florida hospitals.

Those cuts likely will increase the financial burden of patients who have private insurance and local taxpayers who finance the affected hospitals.

"Things are bad and they want to balance the budget on the backs of local government," said Rep. Jack Seiler, D-Wilton Manors, the ranking Democrat on the House Policy and Budget Council.

To cope, Jack Moss said he will try to cut administrative costs from his South Florida office of the Department of Children & Families. Some employees will likely be asked to telecommute or share desks.

Even with such measures, the region, which includes Broward and Palm Beach counties, may need to reduce staff by 11 positions, he said.

"We're trying to absorb the losses in a way that least affects services," Moss said.

While state prosecutors and public defenders do not appear likely to lose any positions, they will see a more than $11 million reduction in "salary bonuses" -- money used to keep good lawyers from leaving for private practice.

"We're taking away a huge recruiting and retention tool," said Seiler, who also is an attorney.

Ten of the 20 new judgeships authorized by the Legislature this year could also be eliminated. Those openings have not yet been filled, but there is no indication which counties would lose judges.

Indications are community college and state university students will be asked to dig deeper into their pockets and pay higher tuition and fees.

Although Gov. Charlie Crist vetoed a 5 percent tuition hike that had been slated to take effect this fall, legislators are expected to approve an identical increase effective in spring 2008.

For state university students, costs would increase to $77.39 per credit hour from $73.71. At community colleges, the price for a credit hour would go to $56.50 from $53.80.

The tuition hike alone will generate an additional $1.9 million in income for Broward Community College. That should ease the pain caused by a projected $3 million cut in the $133 million the college now gets from the state.

"It's not easy," said Bill Pennell, BCC's chief financial officer and vice president of facilities. "But we've tried to make sure we don't touch personnel, because that's where [community colleges] excel the most."